HousingMarket Rebound: A Revival Is Underway
In the bustling city of Berlin, the real estate market has shown some shifts over the past year and into 2025.
A notable decline in the average square meter price for semi-detached houses has been observed, with last year's average price standing at 3,583 euros, a decrease compared to the previous year. However, it's important to note that this trend doesn't seem to extend to apartments, as the purchase prices have remained relatively stable. In fact, the highest purchase price for an apartment last year was a substantial 8.3 million euros, with the square meter price for the highest-priced apartment reaching around 22,000 euros.
Looking forward, it's unlikely that prices will become much cheaper in the current year. Credit remains expensive in Berlin, a factor that could potentially influence the market. High construction costs also continue to be a problem, adding to the overall expense of property in the city.
In terms of rental properties, there's no significant price increase in the current year so far. The current average rent price for existing rental apartments in Prenzlauer Berg is about 20.00 EUR/m², while for new apartments, it's around 25.95 EUR/m². Rent prices for furnished one-bedroom apartments in Prenzlauer Berg generally range between €1,050 and €1,550 per month, similar to the Mitte district. Across Berlin, the median asking rent for existing buildings is lower citywide, but Prenzlauer Berg specifically commands higher rental prices.
Last year, the average asking purchase price per square meter for existing apartments was approximately 6,630 EUR/m², and for new constructions, about 7,540 EUR/m². This suggests that despite some recent price dips, the Berlin real estate market remains strong.
It's also worth mentioning that the average square meter price for apartments decreased by one percent compared to the previous year in Berlin, but no specific location-specific information for this decrease is available.
In conclusion, while there may be some adjustments in the real estate market in Berlin, it continues to be a vibrant and expensive market, particularly in areas like Prenzlauer Berg. Potential buyers and renters should consider these factors when making decisions about property in the city.
[1] Source: Berliner Morgenpost, 2025 [2] Source: WG-Gesucht, 2025 [3] Source: Immobilienscout24, 2025
- The decline in the average square meter price for semi-detached houses in Berlin's real estate market seems not to affect the investing landscape for apartments, as their purchase prices have remained relatively stable, with the highest purchase price reaching 8.3 million euros last year.
- Despite a minor one percent decrease in the average square meter price for apartments in Berlin, the housing-market in areas like Prenzlauer Berg continues to be costly, with rental prices ranging from €1,050 to €1,550 per month for furnished one-bedroom apartments, making it a vibrant yet expensive market for real-estate investing.
